In a recent technical analysis, a popular cryptocurrency analyst has suggested that the price of XRP, the native token of the XRP Ledger, could soon see a “mega pump,” although the analyst said investors should “exercise caution.”
In a post published on the microblogging platform X (formerly Twitter) to their nearly 40,000 followers, analyst Egrag Crypto used a technical tool that uses moving averages and standard deviations to map out potential price movements, the Gaussian Channel, to identify support and resistance levels ahead for XRP.
The analyst noted that the “alignment of support and resistance price targets “ within the framework of the Gaussian Channel “mirrors other charts,” which adds to their significance. The analyst identified support levels at $0.50, between $0.54 and $0.55, and at $0.60.
As for resistance levels, the analyst pointed to a barrier between $0.83 and $0.85. XRP, it’s worth noting, is, at the time of writing, trading at $ 0.61 per token.
The analyst noted that a symmetrical triangle, a pattern used in technical analysis that signifies an asset is undergoing a period of consolidation before breaking out or breaking down, shows a potential surge could occur if the asset surpasses it resistance level.
Egrag Crypto told the XRP Army, the community behind xRP, to “anticipate the forthcoming mega pump,” but advised investors to “exercise caution by strategically allocating portions of your holdings” and pointed to dollar cost averaging as a strategy.
As reported, another analyst has recently suggested XRP could soon surge to reach $1.35 in the near future as the cryptocurrency’s open interest recently surged, and a break above a key trendline could be the “start of an aggressive move for XRP.”
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